Labor MP lambasts Apple and IT suppliers

Labor MP, Ed Husic, has blasted international IT suppliers for charging Australian consumers more than some other overseas markets for their products

A Labor MP has suggested it is time for Australia's competition watchdog to look into why Silicon Valley companies, including Apple, are fleecing families and young people more than US customers for their products.

Western Sydney MP Ed Husic said he had made several attempts since March to contact US computer giant Apple in Australia about why consumers here were charged more for its products but heard nothing back.

"I'm staggered by their behaviour. They'd snub consumer, media and parliamentary interests in the matter," Husic told parliament on Wednesday.

"If IT companies aren't prepared to be transparent about their pricing decisions then perhaps it's time for our own pricing watchdog (the Australian Competition and Consumer Commission) to take up the case for long-suffering consumers and carry out a formal inquiry into why these prices differ so wildly."

A Productivity Commission report into the retail sector earlier this month found there was a longstanding practice in which international suppliers set differential regional prices, Husic said.

The report found the suppliers treat consumers as willing or able to tolerate significantly higher prices than those in other countries, he said.

Husic said the defence by the suppliers that it cost more to supply remote and relatively small markets did not wash with consumers when it came to music, video and software downloads.

Apple was not the only offender, with Microsoft, Adobe and Lenovo all charging hundreds of dollars and in some cases up to 75 per cent more for their products and software.

"Gamers pay up to 60 per cent more here for products compared to the UK or US," Husic said.

"Consumers have noticed this, the media's noticed it and now it appears even the Productivity Commission has noticed it."

Being well known early adopters of technology had come at a price, Husic said.

"Families that also want to get access to technology, whose impact has been far-reaching in our lives, shouldn't be fleeced for the Silicon Valley's bottom line.

More about: Adobe, Apple, Australian Competition and Consumer Commission, Lenovo, Microsoft, Productivity Commission

Comments

1

David

Thu 18/08/2011 - 13:44

Now you can understand why I purchased my eepad Transformer from an online retailer in Hong Kong.
eepad and keyboeard dock $799 in Aus $549 delivered form HK.
The internet and a strong au$ removes many of the barriers that forces us to pay through the nose.

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